Highlights:

  • DroneShield shares jump 12.4% on AU$32.2 million contract win from Asia Pacific military customer.

  • Contract includes vehicle-mounted and fixed counter-drone systems to be delivered in Q2 and Q3 2025.

  • Year-to-date, DroneShield shares are up 33%, reflecting growing demand for its defence technologies.

Shares of DroneShield Ltd (ASX:DRO) soared 12.4% in morning trade on Monday, after the drone defence specialist announced a major new defence contract worth AU$32.2 million. The stock is now trading at AU$1.00, up from 89 cents at Friday’s close, outpacing the broader ASX 300 Index, which is up 0.5%.

The new contract was secured through an in-country reseller, which is a wholly-owned subsidiary of a global, multi-billion-dollar, publicly listed company. While the end customer remains unnamed, it is understood to be a major military department in the Asia Pacific region.

DroneShield said the order comprises five separate contracts, covering both vehicle-mounted and fixed Counter-UxS (uncrewed systems) platforms. The company expects full delivery and payment between Q2 and Q3 of 2025.

In a statement, CEO Oleg Vornik highlighted the importance of the contract, stating:

“In close succession to the earlier order announced on 29 January 2025 from this sophisticated customer and a close military ally of Australia in the Asia Pacific region, DroneShield products are again meeting the challenge set by them.”

He added that the scale and frequency of orders are rising as clients shift from testing to full-scale rollouts, prompting DroneShield to scale up operations across regions.

This latest contract adds to the $12.3 million in prior standalone contracts DroneShield has received from the same reseller between May 2024 and January 2025.

While the identity of the customer remains confidential, DroneShield reassured investors that all material information relevant to assessing the impact of the deal on its share price has been disclosed. The company said the customer's name is not expected to materially influence the valuation of its securities.